The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSPs) for all mandated rabi crops for the 2027-28 marketing season.
The MSP for wheat, one of India's key rabi crops and the main cereal procured for the central foodgrain pool, has been increased from Rs. 2,585 per quintal in the 2026-27 marketing season to Rs. 2,610 per quintal for 2027-28. The Rs. 25 hike represents an increase of less than 1% (0.96%) in the wheat MSP.
The government said the MSP increases are aimed at ensuring remunerative prices for farmers and encouraging crop diversification towards pulses and oilseeds.
Among the six mandated rabi crops, safflower has received the highest absolute increase of Rs. 675 per quintal, taking its MSP to Rs. 7,215.
The MSP for rapeseed and mustard has been raised by Rs. 413 to Rs. 6,613, while the MSP for lentil (masur) has increased by Rs. 390 to Rs. 7,390. The MSP for gram has been increased by Rs. 83 to Rs. 5,958 per quintal, while the MSP for barley has been raised by Rs. 136 to Rs. 2,286.
Minimum Support Prices for Rabi Crops for Marketing Season 2027-28
| Crop | MSP 2027-28 (Rs. per quintal) | Increase in MSP | Increase (%) |
|---|---|---|---|
| Wheat | 2,610 | 25 | 0.96% |
| Barley | 2,286 | 136 | 6.33% |
| Gram | 5,958 | 83 | 1.41% |
| Lentil (Masur) | 7,390 | 390 | 5.57% |
| Rapeseed & Mustard | 6,613 | 413 | 6.66% |
| Safflower | 7,215 | 675 | 10.32% |
While the increase in wheat MSP is relatively modest at Rs. 25 per quintal, the government has announced significantly larger hikes for pulses and oilseeds.
The government said the higher MSPs for pulses and oilseeds are part of its efforts to promote crops other than cereals and encourage farmers to diversify their cropping patterns.
MSP At Least 1.5 Times the Cost of Production
The government said the latest MSP increases are in line with the Union Budget 2018-19 announcement to fix MSPs at a level of at least 1.5 times the all-India weighted average cost of production.
Based on the government's cost estimates, the MSP for wheat provides a margin of 106% over production costs. The corresponding margins are 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.
The government said the higher MSPs would provide remunerative prices to farmers while also incentivising diversification towards pulses and oilseeds.